Relatively few online brokers base their operations in Nigeria. Many of the forex brokers based in the country have little or no oversight by either the Central Bank of Nigeria (CBN) or other regulatory agencies, so trading through them would not be recommended. Your best bet would involve choosing an international forex broker that accepts clients from Nigeria and also has oversight by one or more of the major forex regulators.If youre based in Nigeria and want to trade through the best possible forex brokerages,bear in mind that forex brokerages are not all created equal. Carefully consider your trading needs and make sure theyre adequately met by a forex broker before you commit any funds by opening a live forex trading account with them.
The Nigerian national currency is the Nigerian Naira ₦ (NGN), which is divided into 100 smaller denominations known as kobo. The Nigerian currency is not among the top traded currencies listed by the Bank for International Settlements (BIS).
With respect to the Nigerian financial sector regulation, the Central Bank of Nigeria (CBN) set forth guidelines for the Nigerianstock marketand forex brokers in the Banks and Other Financial Institutions Act (BOFIA) of 2007.
Its role is comparable to that of the SEC in the United States.The BOFIA obligates forex brokers that do business in Nigeria to maintain their clients funds in segregated accounts. This means that clients deposits must be maintained in separate accounts which protects them in the event of bankruptcy or legal actions taken against the broker.
Whether an online forex broker is based in Nigeria or somewhere else, thebest online brokerageshould generally have these 11 elements covered:
Allow you to open and trade in the type of account you want
Give you access to trade all forex pairs and other assets you may want to trade
Maximum leverage ratio high enough for your trading strategy
Provide you with protection against negative balances
Keep slippage and re-quotes on orders to a minimum
Maintain client funds segregated from your own money
Withdrawal and deposit options to suit your needs
One other very important consideration as you choose a forex broker is thetrading softwareit supports. While some brokers offer clients their own proprietary trading platform, many provide market access and platforms from third parties such as MetaTrader 4 and 5 from MetaQuotes, as well as cTrader and NinjaTrader.
If you want a reliable online broker, the list below offers some good candidates regulated by reputable financial regulators. These brokers are not based in Nigeria, though they have a presence in and accept clients from Nigeria.
The selection includes brokers based mainly in the U.K. and Cyprus such as FXTM, FXCM, HotForex and easyMarkets, most of which maintain an African presence by their offices in South Africa. The list also includesFOREX.com, which has a good reputation as a well-regulated broker based in the United States.Deciding on thebest forex brokerfor your particular trading needs depends in large part on your unique situation.
You can check out a partial list of some of the top online forex brokerages that allow you to open an account from Nigeria below.
The broker also has oversight from regulators in the U.K., Australia, Japan, Canada, Hong Kong, Singapore and the Cayman Islands.Accounts at FOREX.com can be funded with just $250 USD. The broker lets you trade micro lots if your preference is to start trading with smaller amounts and also offers an Islamic account option in addition to keeping client accounts segregated from its own funds.
FOREX.com offers several web-based, desktop and mobile trading platforms, which include the MetaTrader 4 and 5 platforms from MetaQuotes, in addition to NinjaTrader. Clients also have access to the companys proprietary Advanced Trading Platform for desktop computers and its Web Trading platform if you prefer to trade via a web browser.
Due to U.S. restrictions, FOREX.com has a maximum leverage ratio of only 50:1 available to clients who trade currencies.
Another popular forex broker in Nigeria is easyMarkets, formerly easy-forex, which was established in 2003. This broker has its base in Cyprus and has oversight from CySEC and ASIC in Australia.
The broker provides its services in more than 160 countries and offers trading in 175 different products, from options and forward contracts to currency pairs, CFDs on commodities, stock indexes, metals and Bitcoin.
easyMarkets lets you open an account with a minimum deposit of $100 USD with a minimum trade size of 0.05 and maximum leverage of 400:1.easyMarkets also offers its clients negative balance protection, which means that you cant lose more than the amount you deposited.
In addition, the broker features free guaranteed stop loses and dealCancellation, which is available on its in-house platform. This allows forex traders to cancel losing trades within one hour of opening the trade for a fee of a few pips.In addition, easyMarkets supports the MetaTrader 4 and MetaTrader 5 desktop, mobile and web-based trading platforms.
eToro is a social trading platform with over 10 million account holders worldwide. They have provided forex products and more to retail clients for over 10 years. eToro wants their users to be a part of the trading community, and gives them the platform to do so.
eToro has some impressive features, with the most popular including, CopyTrader, the Social News Feed, and CopyPortfolios.
CopyTrader and CopyPortfolio allow you to locate a successful trader and copy their strategy. You can copy up to 100 traders with this feature. It is also easy to set up and access.
With the Social News Feed, trader updates from those in your network can be accessed in a Twitter-like thread. Here, tradersare able to get alerts based on certain market factors,can discuss markets, and their strategies.
FXCM has been established since 1999 and has offices in the U.K., South Africa and Australia. This well-regulated broker has oversight from the U.K.s FCA, the Australian Securities and Investment Commission (ASIC) and the South African Financial Sector Conduct Authority (FSCA).
You can open up a trading account at FXCM with only $50 USD, and micro lots trading options are available if youd like to operate using smaller amounts. FXCM keeps client accounts segregated from its own funds.The broker offers clients forex trading via the MetaTrader 4, Trading Station and NinjaTrader trading platforms, with desktop, web-based and mobile platforms available.
FXCM also offers copy trading through ZuluTrades web platform.With respect to leverage, FXCM Australia allows clients much greater leverage than FXCM U.K., with up to 400:1 leverage available on forex trades.
HotForexs offices are located in Cyprus, the U.K., South Africa and the UAE and has oversight from the FCA in the U.K., CySEC in Cyprus, the FSCA in South Africa, and the Dubai Financial Services Authority (DFSA) in the UAE.
In addition to trading in forex currency pairs, HotForex offers trading in spot metals and CFDs on commodities, stock indexes and high capitalization stocks, such as Alphabet (GOOGL), Apple Inc. (AAPL) and Facebook (FB).The trading platforms supported by HotForex include MetaTrader 4 and 5 (MT4/5), as well as the brokers own FIX/API platform.
The MT4 and MT5 platforms have desktop, mobile and web-based versions.If you want to trade currency pairs, HotForex offers its clients an impressively large (but risky) leverage ratio of 1,000:1. You can also trade CFDs on shares, indices and commodities.
FXTM accepts clients from Nigeria and is one of the most popular forex brokers operating in the country, with oversight from Cyprus CySEC, South Africas FSCA and the U.K.s FCA. This award-winning forex broker was named Best FX Broker in Asia and earned the award for Best Trading Conditions from World Finance magazine in 2018.
FXTM supports the MetaTrader 4 and MetaTrader 5 platforms for desktop, mobile and web-based trading. You can open an account with as little as $5 USD for a micro account, and the broker offers very high leverage of 1,000:1 on forex currency pair trades with a notional amount of up to $200,000.FXTM offers its clients trading services in over 240 different tradable instruments, including several CFDs and cryptocurrencies under its FT Global Limited subsidiary.
FXTM pays special attention to its customers needs and features excellent customer service and numerous educational resources for less experienced traders.
If you live in Nigeria, the security of your funds should be top-of-mind as you choose a forex broker. Also, make sure that any trading profits you earn can be easily withdrawn upon request.Select a well-regulated broker that keeps segregated accounts for its clients and holds them on deposit with a top tier bank.
Regulation by a strict authority could also save you considerable trouble and money if an issue ever arises with the broker.It usually pays to do some research on the brokers you think you may want to deal with to find out how they are rated by their clients. Also look out for warning signs, including unresolved issues with brokers as they try to withdraw their trading profits.
$5 per trade, Per-share pricing: $0.006-$0.01 per share ($1 minimum per trade) based on trading volume, Unbundled pricing: $0.002-$0.01 per share ($0.50-$1 minimum) based on trading volume
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